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Break even point formula is?

1. Break even point = Sales - fixed costs - variable costs.

2. Break even point = Sales - labor costs.

3. Break even point = Sales - material costs.

 

 

Cost Accounting
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Question added by Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate
Date Posted: 2015/03/10
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Muhammad Ramzan Tufail ACCA
by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

(1) is the Correct Ans.

 

Basically

Break even Point = Fixed Cost + Contribution Margin/Unit

So, rearrange this

Break even Point = Sales - Fixed Costs - Variable Costs

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